The second-biggest property developer in China is the real estate company, Evergrande. The default of the developer is looming over the market.
"Finance & Investment"
Robert Kiyosaki predicts that the default of Evergrande will lead to a major economic crash. In a tweet he said:
“HOUSE of CARDs coming down. Real estate crashing with the stock market, China’s Evergrande Group cannot pay. Valuation of properties fake. Will the real estate crash spread to the US? Yes.”
In an interview with Kitco News, he also said, “this is going to be the biggest crash in world history.”
Kiyosaki has provided some suggestions in case the economy goes down. You should diversify your investments with three.
Robert Kiyosaki’s recommendations:
▶ Gold
When the market starts to go down, one of the first investments that start to pay off is gold. It is also Kiyosaki’s first suggestion, an easy safe haven that you can seek out. Gold cannot print and is not controlled by world governments, so it is a currency that holds its value.
Getting ahead is important, as many investors will move to gold as the market moves downwards. The beginning months of COVID-19 saw the price of gold drive up over $250 an ounce. Investing in gold is easy but it involves buying a chunk of the metal all at one time.
What is easier for investors without the money at hand is investing in gold mining companies. As the need/demand for gold goes up, these mines will profit more and then your shares perform better. Investing in these means that you’re not investing in the metal, you’re investing in this company, so there’s a risk there.
▶ Silver
Silver is another one of those logical suggestions that Kiyosaki gives. It is another precious metal and trends like gold. Silver stores value in the metal and also cannot print.
We are now seeing prices that are 30% higher over the last two years. Silver doesn’t show any sign of diminishing, especially with its currency use and use in certain industries.
Ways to invest in gold and silver include; bullion, bars, or mining companies. Something that is worth noting though is that silver has a lot of uses in the industrial world and as such some of the value comes from the demand there. If the industries that use silver start to have a downturn, the value of silver can get affected too.
▶ Bitcoin
, Kiyosaki now suggests Bitcoin as a way to hedge against the market crash. Let’s take a moment to look at why. Bitcoin has now entered the mainstream and a lot of people have started to invest. Its price is also holding at high values. Besides that, it isn’t controlled by any government.
You can invest in Bitcoin through many companies. This allows you to have an asset that you can control on your own. At the same time, that comes with the volatility/risk that comes with the Bitcoin market. You can also invest in companies that work with Bitcoin such as Bitcoin farms.
Tesla has invested in Bitcoin, to protect itself from any potential crash. Other companies and investors start to notice when a name as big as Tesla invests in something.
PayPal allows you to invest in cryptocurrencies through their system. You can buy, sell, and hold some cryptos through the same account you use to make online purchases. This simplifies the process of owning and selling crypto by a lot. It also reduces the number of accounts that you have to have.
If you have an interest in crypto-related companies, Nvidia stock is the stock for you. Nvidia makes graphics cards that cater to crypto coin mining. That says stocks are quite expensive. Nvidia starts around $205 for example.
You can invest in anything you want or can afford with Bitcoin. Bitcoin is the recommended option for those looking to invest in cryptocurrencies. The others can offer protection but they aren’t as well-known and reliable.
▶ An Even Better Option
No matter which of the above three investment options you consider, they have risks to them. Even if they aren’t tied to the stock market or financial sector, when a crash hits, they will get affected.
Kiyosaki has an even better option for investors. You can invest in a more protected, better option, U.S. Farmland.
No matter what happens, people need to eat, even if there is a crash. Having agricultural land in your portfolio allows you to have a profit even when all else is down.
You can invest in farmland by buying a farm and managing it. You can also invest in farms in the U.S. You will also have that investment for the long term. It will perform whether there is a crash or not.
Thank you...
0 Comments